Increasing the capital gains tax may slow down stock turnover, which could slow down the growth of the stock price. I don't see how it would impact the actual operations of the company.

The less demand for the stock, the less the stock is worth. This means that treasury stock (stock held by the company) is worth so the company's net worth is decreased. The less the company is worth, the more difficult it is to borrow for inventory, expansion, maintenance, etc.

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